Netflix Stock Pops On Higher Revenue Outlook, $15B Buyback Boost

Netflix (NFLX) reported fourth-quarter results that surpassed analysts’ expectations and raised its 2025 revenue forecast, sending shares soaring after the bell Tuesday. 

The streaming giant saw revenue grow 16% to $10.25 billion, above the analyst consensus compiled by Visible Alpha. Earnings came in at $1.87 billion, or $4.27 per share, up from $937.8 million, or $2.11 a share, a year ago and beat analysts’ expectations. 

Gains Come as Netflix Adds New Subscribers

The growth came as Netflix said it ended 2024 with 302 million memberships and achieved 19 million net new additions in the fourth quarter. This is the last quarter Netflix will report membership and average revenue per member on a quarterly basis, as previously announced.

Netflix Lifts Its Revenue Outlook, Expands Buybacks

Looking ahead, Netflix said it expects fiscal 2025 revenue of $43.5 billion to $44.5 billion, $500 million higher than its previous estimate. Analysts had expected $43.65 billion, according to Visible Alpha.

The streamer also said it boosted its share repurchase program by $15 billion, bringing its total authorization to $17.1 billion. Last year, Netflix repurchased 9.9 million shares for $6.2 billion.

Subscription Prices Also Rise

Netflix is raising its subscription prices in the U.S., Canada, Portugal, and Argentina as well, which the streaming giant said was already factored into its guidance.

The streamer’s ad-supported plan will move to $7.99 from $6.99, the standard ad-free plan to $17.99 from $15.49, and the premium plan to $24.99 from $22.99, according to reporting from The Verge citing a Netflix spokesperson.

Co-CEO Greg Peters called the move part of a “virtuous cycle” on the company’s earnings call. “We look to continually provide more value to our members,” Peters said, adding “when we’ve done that, then we ask them to pay a bit more.”

Netflix said new ad-supported memberships represented 55% of all Netflix signups in countries where the plan was available, and the ad-supported tier grew at least 30% quarter-over-quarter for the second-straight period.

Shares of Netflix jumped over 14% in extended trading Tuesday following the company’s earnings call. They were up nearly 80% over the past year as of Tuesday’s close.

UPDATE—Jan. 21, 2025: This article has been updated since it was first published to include additional news, comments and context.